The fascination that Indians have always had with gold has spread throughout the world. India is consistently ranked as one of the top buyers of gold around the globe. Gold is regarded as having great worth and is also seen as a potential source of capital appreciation in the future. However, not many people are aware that gold may also be used to fund any emergency cash requirements such as medical costs, the education of children, the establishment of a business, a down payment on the purchase of a vehicle, and even yearly vacations with family. Kamadhenu provides cash for gold in Keelkattalai, Chennai.
You can make use of the gold that is just sitting in your bank locker doing nothing if you ever find yourself in a position that requires cash quickly
What are the advantages that come along with getting a loan for gold?
The following is a list of the primary advantages of taking out loans against gold:
Quick Processing:
Due to the fact that gold loans use the precious metal itself as collateral, obtaining one of these loans from a bank or other lending institution is quick and easy. In the event that the borrower does not repay the loan, the bank is able to quickly and easily sell the gold that was used as collateral for the loan. As a result, the typical processing time for such loans at financial institutions in just a few hours. Because of this, the time needed to process applications is cut down, providing borrowers with an increased level of convenience.
Option to “Pay Interest Only” —
Gold loans frequently come with a one-of-a-kind feature that enables the borrower to only pay the interest component when repaying the loan. This is referred to as the “Pay Interest Only” option. At the conclusion of the loan’s term or as part of the formalities associated with its closure, the principal amount may be repaid.
Because gold loans are considered secured loans, the interest rate that banks charge for them is significantly lower in comparison to the interest rate that they charge for unsecured loans such as personal loans. Gold loans typically come with interest rates in the region of 13 to 14 percent. On the other hand, the interest rates for personal loans are often at around fifteen percent. The bank will provide reduced interest rates on gold loans to borrowers who are able to produce additional collateral in order to qualify for the loan.
Because gold is used as collateral for gold loans, many financial institutions, including banks and NBFCs, do not assess any costs for the loan’s processing because the loans are disbursed immediately.
Minimal Penalties for Foreclosure –
When it comes to gold loans, several financial institutions, including banks and lenders, either do not charge or have minimal prepayment charges of 1 percent.
The majority of applications for gold loans do not require the borrower to provide proof of income to the lender. This is because the loan is secured against the gold that the borrower pledges to use as collateral for the loan.
No Effect of a Poor Credit History the majority of the time
A borrower’s loan amount is determined by the bank based on the borrower’s ability to repay the loan as well as their credit history. Gold loans, on the other hand, don’t work like that at all. Because gold is used as collateral, lenders are certain about the repayment of the principal component of the loan. As a result, lenders do not rely on the credit history of the borrower in order to decide whether or not to grant the loan.
Security of the Physical Gold –
It is the obligation of the lender to ensure that the physical gold is kept in a secure location. Because it is often secured within the bank’s vault, borrowers do not need to be concerned about the same thing happening to their money. When they have finished making payments on the loan, the bank will give them back the gold.
Why Choose Kamadhenu?
At kamadhenu our expert team members offer quick and fast cash for gold in Chennai. They also provide free services done @ doorstep*. To get a loan against gold coins, gold bars, or gold jewelry, you have landed in the right place. If you are looking for a gold loan in Chennai then Kamadhenu is the best place you can visit. Get a gold loan near me only at Kamadhenu and let our experts help you in getting cash for gold near you.